HMS

• Beneish M‑Score = -1.0892 (measures likelihood of earnings manipulation patterns); Vietnam peer percentile = 87th, showing this score is higher (more aggressive) than 87% of Vietnamese peers, and YoY change +2.06 indicating a substantial upward move in the metric.
• Accruals / cash conversion: Earnings‑Quality overall 40.1/100 and Cash conversion 0.0/100 (measures operating cash flow relative to reported profit over three years), with the company’s three‑year cash conversion at -0.63 (16th percentile versus VN non‑financials), showing profits have not been turning into cash.
• Altman Z‑Score = 1.32 (measures bankruptcy distance using balance‑sheet and income metrics) which places the company in the model’s distress zone.
• AQI (Asset Quality Index) = 2.9356 (measures increases in non‑current or unusual assets that can inflate profits), and Receivables outside the trade cycle = 12.0% of total assets (84th percentile), implying a material share of assets in prepayments/loans/long‑term receivables.
• TATA (Total Accruals to Total Assets) = 0.1136 (measures extent of accruals in profits); a positive number of this size contributes to weaker accruals quality.
• SGI = 1.5517 (Sales Growth Index = 55% growth) and DEPI = 1.0950 (Depreciation Index >1 indicating depreciation policy change or asset mix shifts) — both are components that can complicate income comparability and feed into the elevated M‑Score.

• Receivables quality = 100.0/100 (measures cleanliness and proportion of receivables that look like ordinary trade receivables) — supportive evidence that trade receivables themselves are not unusually aggressive.
• DSRI = 0.6287 (Days Sales Receivables Index <1, measuring no abnormal rise in days’ sales outstanding), which aligns with the strong receivables quality score.
• SGAI = 0.6916 (Selling, General & Admin Index <1, indicates SGA expense growth did not outpace sales), and LVGI = 1.0673 (Leverage Index ~1.07, not an extreme leverage jump) — mixed but some items are not showing extreme management distortions.
• Piotroski F‑Score = 5/9 (measures short‑term operating and financial strength; a middle score indicating neither clear deterioration nor strong improvement).

Ownership is concentrated: the largest shareholder, Phạm Minh Đức, holds 23.6%, and the next four individuals hold 6.7%, 4.0%, 4.0% and 1.6% respectively. Director‑deal registrations in the past year show 0 sale registrations and 1 purchase registration (300,000 shares), net registered volume +2.75% of shares outstanding — registrations reflect intentions filed with the exchange, not executed trades.

• Compare the FY2025 note(s) disclosing "prepayments to suppliers, loans receivable and other long‑term receivables" to the line items summing to 12.0% of total assets and reconcile movements year‑on‑year.
• Verify the operating cash flow and parent‑company net profit lines over the last three annual statements to reproduce the three‑year cash conversion ratio of -0.63 and reconcile major items driving the gap (non‑cash accruals, related‑party flows).
• Inspect the fixed‑asset and depreciation note to explain DEPI = 1.0950 (changes in depreciation policy, useful lives, or asset reclassifications) and any large additions/disposals that affect AQI and TATA.
• Review the disclosures of related‑party transactions and the majority‑owner schedules to trace any material flows to/from the largest shareholders (Phạm Minh Đức and other listed individuals).